Seller’s stamp duty redundant

More borrowers are defaulting on their home loans because of multiple factors, including interest rates trending up and the challenging rental market for landlords. (“Singapore empty homes may climb to highest since 1998”; Jan 16, online)

The seller’s stamp duty, a sliding scale of stamp duties until the fourth year after purchase, acts as an unnecessary obstacle to troubled borrowers who may be trying to sell their property to alleviate their financial woes.

The Total Debt Servicing Ratio has been effective in controlling property speculation, and the seller’s stamp duty is redundant. The authorities should consider abolishing the latter as we face an environment of rising interest rates.

The option of selling the property without having to incur a hefty seller’s stamp duty may offer some parties a feasible way out of their predicament and, possibly, the financial embarrassment of bankruptcy.